China Looks to Services Sector to Drive Domestic Consumption Growth
China Plans to Boost Services Consumption to Revive Domestic Demand Beijing, Jan 21 — China is preparing new measures to promote the consumption of services, focusing on areas such as elderly care, healthcare, education, travel, and leisure. The move comes as demand for goods slows and policymakers look for new ways to support economic growth. For years, China’s economy relied heavily on manufacturing, large infrastructure projects, and exports. Now, the government wants to rebalance the economy by encouraging people to spend more at home, especially on services. Why China Is Focusing on Services Chinese authorities believe labor-intensive services can play a key role in shifting the economy toward consumption. Unlike manufacturing, where supply often exceeds demand, China’s services sector suffers from shortages due to years of underdevelopment and policy preference for factories. Sectors like healthcare, elderly care, tourism, and entertainment have strong growth potential, espe...